CUC discloses plan to review payment proposal from CHCC

The Commonwealth Utilities Corp.’s board of directors has set a period of 30 days to review a draft payment proposal from the Commonwealth Healthcare Corp.

CUC board chair Adelina Roberto said the board has started the review last June 30 and will come out with a decision on July 30.

She said after a decision has been made, the CUC board will inform the CHCC and “discuss our own board’s findings.”

One of the major components of the draft proposal is a monthly payment of “at least” $150,000 after the CHCC pays the CUC a $250,000 payment for the month of June.

In a letter, the CHCC said it will make the monthly payment thereafter “using current allotment and other revenue sources until CHCC completes installation of a renewable system.”

Roberto disclosed the CUC board’s intent to conduct the 30-day review period during a meeting with lawmakers at Capital Hill on Monday.

She also stressed to the lawmakers that the proposal from the CHCC is a “draft proposal” and that the board will still need to discuss the proposal.

John Riegel, chief engineer and acting executive director at CUC, commenting on the proposal, said the CHCC board may “feel comfortable to pay the $150,000 now.”

He said the proposed payment plan did not indicate how long the CHCC plans to pay the $150,000 per month. He also confirmed that this is a “concern” because the CHCC’s power consumption in a month is about $500,000.

“It is an initial proposal, but it is lower than the actual consumption,” Riegel said, adding that the proposal “is a very lengthy proposal, and is taking on two concepts.”

CUC, CHCC meeting
Sen. Sixto Igisomar (R-Saipan), head of the Senate Committee on Public Utilities, Transportation, and Communications, earlier called for a meeting with the CUC.

After hearing the updates from the CUC, the lawmaker said he now wants both the CUC and CHCC boards to meet with legislators in about “two weeks.”

Igisomar said he wants “to know more” about the situation between the CHCC and CUC regarding the draft proposal.

“It is a draft proposal, saying it is all the CHCC can afford. It might go up, and I’m not saying it is a perfect agreement,” Igisomar said

He did admit that finds the proposal an “innovative payment plan.”

Igisomar also expressed hope that the negotiations will bear results. “If the negotiations fail, and the CUC takes the CHCC to court, the government is again paying attorney’s fees and other unnecessary costs,” Igisomar said.